A lot of talk is going on about the sudden decline in the price of Google CPC and the factors causing the decline in the price in the last few quarters. Some people have attributed the reason for the decline as the rise in the popularity of mobile whereas others have come up with the sudden rise of YouTube as the reason for the decline. Whatever be the reason, the price of CPC is has been coming down in the last 11 quarters.
At one end as the price of Google CPC is coming down, the price of branded CPC is on the rise. As an experienced PPC Reseller, we should look at how we can deal with the rising cost of branded CPC’s.
Changes are taking place. The use of mobile has increased quite drastically and the quality of landing page has improved over the years. Google built their business model with the impression that it is raising the floor to drive results. But, it is more risky than rewarding. As the condition is changing, and dealing with the changing condition is a big question.
Tips for Dealing with the Price Rise
- Quality Score Review: Most of you never spend time in reviewing their quality score and the factors that influence the quality score. Everyone takes it for granted and does not give any importance to optimization based on the quality score. With the help of a PPC Reseller, you may be able to have a close look at what is happening. You can see that when the quality score drops, CPC starts to increase. So if you wanted to keep the CPC down, you should spend some time to improve the quality score. When the quality score starts increasing, CPC will automatically come down and this trend is likely to continue.
- Consider your Competitors: The popularity of online advertisement is on the rise. Even though the price of Google CPCs has come down drastically in the last few quarters, you can see that the revenue it has been generating from advertisements is increasing. The reasons for the growth in revenue are factors like rise in user behavior, entry of competitors into the market, small business and big brands that haven’t played in the paid space.
Looking at the competition that is prevailing in the market will help you understand how your data points have performed.
- Optimization of Bid: Most brands and advertisers consider their brand to be no 1. This thought needs to be challenged. Closer bid is considered as valuable for branded keywords. When your ranking goes up and your CPC decreases, does that mean incremental traffic is worth the increase in cost? As a brand owner, you must try to become more efficient and draw value of the high click-through-rate.
The value of branded CPC is on the rise and it is our responsibility to play it safe. With the help of a PPC freelancer, we have to make the optimizations for dealing with the rise in cost of CPC.